Correlation Between JB Hunt and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both JB Hunt and JLEN Environmental at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JB Hunt and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hunt Transport and JLEN Environmental Assets, you can compare the effects of market volatilities on JB Hunt and JLEN Environmental and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JB Hunt with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and JLEN Environmental.
Diversification Opportunities for JB Hunt and JLEN Environmental
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and JLEN is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets and JB Hunt is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JB Hunt Transport are associated (or correlated) with JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of JB Hunt i.e., JB Hunt and JLEN Environmental go up and down completely randomly.
Pair Corralation between JB Hunt and JLEN Environmental
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 1.05 times more return on investment than JLEN Environmental. However, JB Hunt is 1.05 times more volatile than JLEN Environmental Assets. It trades about 0.11 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.3 per unit of risk. If you would invest 18,120 in JB Hunt Transport on September 1, 2024 and sell it today you would earn a total of 884.00 from holding JB Hunt Transport or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. JLEN Environmental Assets
Performance |
| Timeline |
| JB Hunt Transport |
| JLEN Environmental Assets |
JB Hunt and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and JLEN Environmental
The main advantage of trading using opposite JB Hunt and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, JLEN Environmental can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| JB Hunt vs. Bankers Investment Trust | JB Hunt vs. Beeks Trading | JB Hunt vs. Leroy Seafood Group | JB Hunt vs. Hilton Food Group |
| JLEN Environmental vs. Advanced Medical Solutions | JLEN Environmental vs. Deltex Medical Group | JLEN Environmental vs. Axway Software SA | JLEN Environmental vs. Pets at Home |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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